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16.07.2014 16:43:32

Doubts over China remain despite stabilising growth - Quickview by Emerging Markets Economist Craig Botham

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Doubts over China remain despite stabilising growth

July 2014

Quickview: Doubts over China remain despite stabilising growth

by Emerging Markets Economist Craig Botham

In summary:

  • The downward trajectory of economic growth in China was reversed in the second quarter, as real GDP grew 7.5% year on year.
  • The new policy stance would suggest continued mini-stimulus efforts to support growth at current levels.
  • Resorting continuously to credit stimulus will only exacerbate financial fragilities and raises the likelihood of financial crisis in future years.
  • Overall, the strengthening of Chinese growth gives us little cheer, given its roots.

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